In: Finance
Present day value = 1BR =.1883
Present Contract worth 100,000 * .1883 = 18830 USD
daily price changes
Day | Rate Of price Change | Investment Value Daily | |
1 | .0015 | 1.0015*.1883 =.18858245 | 100000*.18858245 |
2 | .0010 | 1.0010* .18858245 =.188771 | 100000*.188771 |
3 | -.0005 | .9995*.188771 =.1886766 | 100000*.1886766 |
4 | .0020 | 1.0020*.1886766=.189054 | 100000*.189054 |
5 | -.0025 | .9975*.189054 = .18858 | 100000* .18858 |
Investment Value
Present 1,00,000 *.1883 = 18,830 USD
Day 5 1,00,000*.18858 = 18,858 USD
The Contract will br in profit of 28USD at the end of day five